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June 5, 1950 — 1:15 P*». A gentleman called and asked for Governor Scclee* sacratary. I asked him what his name was and he told he didn't care to t.;ive that, but would say he w&.s a close friend of Abe Murdock, who is & close friend of Governor Eccles. He spoke i/ith an accent. As he dictated the aessaga I got the impression he was Spanish —- no doubt connected with the Embassy. He said he would not give the information to anyone else on the Board (when I wanted to transfer him to Ca rpenter). Message: He thought yoa tbottld knov tfaat Mr. J. K. Varciaaan was usin^ 'is rdgh office and he did no I think thtt the Federal Reserve Board would approve of his doing so. He said Nr. Vardaa&an negotiated with a Mr. Timothy A. Mclnerny, Who was "stoo^ie" (stooge) public relations p t ) for Tom Clarie when he was in ff the Justice Department; lad thnt hi is now a lobbist and advartisin^ man for foreign iatsreats. his ftddr^M i ? 503 S Street, N. k.. Ha Hlil thrt the deal s was this: Mclnerny agreed to take Vardama^s son in as a partner providing Vardanaan used tbt influence of his high office vith the Spanish Aiabassador and arrange with th'? Spanish Sabassy to retain Mclnemy ?.<nc\ Vardaman'e son to lobby and assist vith hi&L ofi"ici&ls in Vashii^gioQ on behalf of the Spanish. Mr. and Mrs. Vardaaan fin&lly "err cKed" tne Embassy and were entertained by the Ambassador, and during -;is first party at the Embassy Vardaman proposed the proposition to the Ambassador, assuring him t:at he (Vardaman) would use all of his influence with the high government officials, a.nd t c t h« would also fft use his influence vith the Bspert Bank. Mclnerny and Vardaman (He did not say the son) became partners and received a large fee froai the Spanish government through the Spanish Embassy. They were paid the large fee bat did not deliver as agreed. He said Vardaraan was approached yesterday by someone fron the Chicago Tribune (as I understood it) and Vardaman admitted the connection. He said he understood tnat Vardaxaan had known Mclnerny since 1932.